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CLIENT BACKGROUND

The Client is one of the leading private sector mining companies in Asia, currently developing the world-class poly-metallic mining project representing an untapped opportunity for development on a larger scale. As part of the plan to develop and expand its business, the mining company planned to streamline their production, sales, and logistics processes while integrating these functional categories of their business.
Apart from that, leverage SAP ERP solutions to help remove information silos to achieve risk mitigation, cost flexibility goals, agility, and a platform for future innovation.

INDUSTRY LANDSCAPE

Across the world, the mining and exploration industry has gradually shifted focus from manually performing operations and point solutions to an affordable implementation of a fully-fledged enterprise management system like SAP across the organization. Given their size and the vast scale of resources, mining IT managers want to transform from information silos to tightly integrated processes. Therefore, they want to leverage the industry best practices that come with the enterprise management system like SAP ERP solutions.
SAP is the primary choice, and the mining IT managers overwhelmingly prefer SAP to turn around their back-office operations and gain from front office agility. Globally, a pre-integrated, off-the-shelf SAP solution dominates the mining sector.

THE OPPORTUNITY

The Client articulated improvements to address some of the sector’s biggest headaches – reconciliation of physical and book stock from multiple locations, capital asset productivity, tracking of production and shipment assays, economies of scale, and pricing & compliance with statutory needs. Overall, in an increasingly competitive marketplace, IT efficiencies and costs were a major issue for The Client to opt for a business software platform on SAP.

SOLUTION

To remove all these pain points, Eclature’s Agile Mining SAP Best Practice solution was implemented in the scope of the development of the project and budget within 3.5 months, resulting in the leading mineral mining company being able to do business better with.

Enhanced Supply Chain Planning:

  • Of core products such as Tungsten Bismuth, Fluorspar, and Copper production.

Real-Time Interface:

  • Better monitoring and reconciliation of stock across locations; interface between Weighbridge and SAP and putting strict control on quantity outflow.

Batch Management:

  • Of management of the quality of the products on a daily basis and in-process quality control.

Workforce Management & Real-Time Tracking:

  • Of Mine Stock levels and crushing of the ROM production from the mines including routing, shipping stock from mine to port.

Sales & Distribution Efficiency:

  • Enabling the contract-to-cash cycle, integration of Weighbridge and SAP, and automated batch determination.

Mails Alert:

  • To the production team with Bag/Batch numbers, if Assays are not uploaded within a stipulated time-frame.

Sales Invoice:

  • Ensures near-perfect book of accounts.

BUSINESS IMPACT

  • Integrating both production and logistics delivery, removal of information silos, early warning system enabling the team to take the right decisions at the right time.
  • Physical and book inventory reconciliation, batch traceability from production to sales.
  • Automated selling of poly-metallic Tungsten, Copper, Bismuth, Fluorspar, and rare earth(s) from setting up the contract process to customer settlement, plugged revenue leakages through accurate commodity pricing.
  • Tax and duty setups, master data management of customers worldwide, materials & comprehensive price master whenever needed.
  • Capturing weight data by using a digitizer, control over inventory management removing human error factor, and improved traceability of stock.

With Eclature as an implementation partner of SAP, The Client was able to see a great change in the way they conducted their business operations and in the way they handled their daily business transactions while leveraging the best practice for Mining which had enabled them to develop a good understanding of their business needs.